whale bitcoin

Whale accumulation continues to contribute to the Bitcoin bull run

Analysts recognize the consistent pattern of increasing whale clusters as a sign of whale accumulation which contributes to the Bitcoin rally.

On November 24, Bitcoin’s price went past the $19,000 mark after 3 years. Among other factors, whale accumulation contributes largely to the consistent spike in Bitcoin’s price.

Throughout November, whale clusters have steadily formed as Bitcoin’s price continued to rise. These clusters emerge when Bitcoin whales buy significant quantities of BTC and hold on to them. Analysts take these as telltale signs of whale accumulation which contributes to the rally.

Three major Bitcoin whale clusters were spotted by on-chain analyst Whalemap by the end of October. The $11,857, $12,256 and $12,868 clusters served as support and resistance areas when Bitcoin’s price struggled to pass through the $13,000 mark. Weeks after these whale buys, Bitcoin climbs past $19,000.

Past data reveals that in previous cycles, whale activity reflects dramatic movement in prices during critical levels. When whales sell huge quantities of their assets, the price drops. When the opposite happens and they don’t move significant amounts of coins, the price increases. If they have no intention of selling them in the near future, these clusters become stepping stones to higher prices in the charts.

Researchers from the on-chain market analysis platform Santiment reported in an official tweet an increase not just in amounts of Bitcoin purchased by whales but in the number of whales itself. ‘The amount of #Bitcoin whales with at least 10,000 coins (currently $185M or more) has ballooned to 114 the past couple days as prices soared above $18k.’

The report adds that the number of holders with at least $1,000 BTC, which is roughly $18.5M, has reached an all-time high of 2,449. With more investors accumulating huge amounts of Bitcoin, the price will only continue to increase.

Crypto investment firm Pantera Capital has argued in their monthly investor letter that today’s rally is more sustainable compared to the bull run in 2017. This means there is less risk of the price dropping.

The report explains that the main difference between the 2017 rally and the current trend is Bitcoin’s accessibility. Thousands of exchange sites offer a wide range of trading services compared to previous processes. Additionally, mainstream finance applications such as PayPal and CashApp are now offering crypto services, giving over 300 million combined users unrestricted access to digital currencies.

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